Global Reporting Initiative Index

This index was developed to help interested readers compare the information in Alcoa's online sustainability reporting and Annual Report and on our website with the Global Reporting Initiative (GRI) G4 guidelines. We also draw upon criteria from other organizations to frame our sustainability reporting.

This report is in accordance with the “core” option of the G4 guidelines.

General Standard Disclosures

Indicator

Description

Location

Strategy and Analysis

G4-1

Statement from the most senior decision-maker of the organization about the relevance of sustainability to the organization and its strategy for addressing sustainability.

Organizational Profile

Number of countries where the organization operates, and names of countries where the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report.

Whether or how the precautionary approach or principle is addressed by the organization.

Alcoa supports the precautionary principle under the United Nations Global Compact. Consistent with that principle, we advocate a risk-based approach to our operations through our extensive management systems.go

G4-15

Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or which it endorses.

Memberships of associations and national or international advocacy organizations in which the organization holds a position on the governance body, participates in projects or committees, provides substantive funding beyond routine membership dues, or views as strategic.

Identified Material Aspects and Boundaries

All entities included in the consolidated financial statements are included in the sustainability report. Page 90 explains the principles of consolidation, and page 179 includes a list of significant subsidiaries.

G4-18

Process for defining the report content and the aspect boundaries and how the organization has implemented the Reporting Principles for Defining Report Content.

Key topics and concerns that have been raised through stakeholder engagement, broken down by stakeholder group, and how the organization has responded to those key topics and concerns, including through its reporting.

The Public Issues Committee, comprised solely of independent directors, provides guidance on matters relating to the company’s corporate social responsibility and advises on current and emerging political, social, and environmental issues and developments. Economic matters are overseen by the Audit Committee, which consists solely of independent directors. The Board of Directors authorizes actions to be taken by relevant company personnel as it deems appropriate.

G4-36

Executive-level position(s) with responsibility for economic, environmental and social topics, and whether post holders report directly to the highest governance body.

Alcoa’s chairman and CEO, who reports to and is a member of the Board of Directors, has ultimate responsibility for economic, environmental, and social topics.

The chief financial officer is responsible for economic topics, and the executive vice president of human resources and environment, health, safety, and sustainability has responsibility for environmental and social topics. Both report to the chairman and CEO.

G4-37

Processes for consultation between stakeholders and the highest governance body on economic, environmental and social topics. If consultation is delegated, describe to whom and any feedback processes to the highest governance body.

By serving in both positions, the chairman and CEO is able to draw on his detailed knowledge of the company to provide the board leadership in focusing its discussions and review of the company’s strategy. In addition, a combined role of chairman and CEO ensures that the company presents its message and strategy to its stakeholders with a unified voice. It also allows for efficient decision making and focused accountability.

Alcoa has a strong, independent lead director, and this role provides an appropriate organizational structure for the independent directors to provide independent oversight of management. The lead director reviews agendas for the meetings and presides over executive sessions of the independent directors at each regularly scheduled board meeting.

G4-40

Nomination and selection processes for the highest governance body and its committees.

Highest governance body’s and senior executives’ roles in the development, approval, and updating of the organization’s purpose, value or mission statements, strategies, policies, and goals related to economic, environmental and social impacts.

Report the internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity, such as escalation through line management, whistleblowing mechanisms or hotlines.

Absentee rates are not provided due to the information currently not being collected and compiled on a global basis. A new human capital management system will be implemented globally in 2014 to facilitate data collection.

G4-LA7

Workers with high incidence or high risk of diseases related to their occupation.

Although the potential for risk exists within our various operations, we implement stringent and comprehensive mitigation and prevention efforts. These include industrial hygiene monitoring, engineering controls, personal protective equipment, ergonomic programs, and medical oversight. In addition, our global wellness program addresses the most important aspects of personal health and well-being.

Sector-Specific Aspects

Artisanal and Small-scale Mining

MM8

Number (and percentage) of company operating sites where artisanal and small scale mining (ASM) takes place on, or adjacent to, the site; the associated risks and the actions taken to manage and mitigate these risks.

Due to the minimal artisanal and small-scale mining on Alcoa sites worldwide, there is not a formal corporate policy. Action is taken on a case-by-case basis.

Resettlement

MM9

Sites where resettlements took place, the number of households resettled in each, and how their livelihoods were affected in the process.

No resettlements took place in 2013. We are in the process of evaluating resettlement for a potential refinery project in Guinea.go

Integrate sustainable development principles into company policies and practices.

Plan, design, operate and close operations in a manner that enhances sustainable development.

Implement good practice and innovate to improve social, environmental and economic performance while enhancing shareholder value.

Encourage customers, business partners and suppliers of goods and services to adopt principles and practices that are comparable to our own.

Provide sustainable development training to ensure adequate competency at all levels among our own employees and those of contractors.

Support public policies and practices that foster open and competitive markets.

Principle 3: Uphold fundamental human rights and respect cultures, customs and values in dealings with employees and others who are affected by our activities.

Ensure fair remuneration and work conditions for all employees and do not use forced, compulsory or child labour.
Provide for the constructive engagement of employees on matters of mutual concern.

Implement policies and practices designed to eliminate harassment and unfair discrimination in all aspects of our activities.
Ensure that all relevant staff, including security personnel, are provided with appropriate cultural and human rights training and guidance.

Minimise involuntary resettlement, and compensate fairly for adverse effects on the community where they cannot be avoided.
Respect the culture and heritage of local communities, including indigenous peoples.

Consult with interested and affected parties in the identification, assessment and management of all significant social, health, safety, environmental and economic impacts associated with our activities.

Ensure regular review and updating of risk management systems.

Inform potentially affected parties of significant risks from mining, minerals and metals operations and of the measures that will be taken to manage the potential risks effectively.

Implement a management system focused on continual improvement of all aspects of operations that could have a significant impact on the health and safety of our own employees, those of contractors and the communities where we operate.

Take all practical and reasonable measures to eliminate workplace fatalities, injuries and diseases among our own employees and those of contractors.

Provide all employees with health and safety training, and require employees of contractors to have undergone such training.

Advance understanding of the properties of metals and minerals and their lifecycle effects on human health and the environment.

Conduct or support research and innovation that promotes the use of products and technologies that are safe and efficient in their use of energy, natural resources and other materials.

Develop and promote the concept of integrated materials management throughout the metals and minerals value chain.

Provide regulators and other stakeholders with scientifically sound data and analysis regarding our products and operations as a basis for regulatory decisions.

Support the development of scientifically sound policies, regulations, product standards and material choice decisions that encourage the safe use of mineral and metal products.

Principle 9: Contribute to the social, economic and institutional development of the communities in which we operate.

Engage at the earliest practical stage with likely affected parties to discuss and respond to issues and conflicts concerning the management of social impacts.

Ensure that appropriate systems are in place for ongoing interaction with affected parties, making sure that minorities and other marginalised groups have equitable and culturally appropriate means of engagement.

Contribute to community development from project development through closure in collaboration with host communities and their representatives.

Encourage partnerships with governments and non-governmental organisations to ensure that programmes (such as community health, education, local business development) are well designed and effectively delivered.

Enhance social and economic development by seeking opportunities to address poverty.

Report on our economic, social and environmental performance and contribution to sustainable development.

Provide information that is timely, accurate and relevant.

Engage with and respond to stakeholders through open consultation processes.

Alcoa uses a variety of internal standards and data collection systems, as well as a rigorous internal and external audit process. In addition, we conform to external data reporting standards, such as the Carbon Disclosure Project, and comply with government statutes like the Sarbanes-Oxley Act.

The chairman of the board is the chief executive officer of Alcoa.

Alcoa has had a strong, independent lead director for a number of years, and this role provides an appropriate organizational structure for the independent directors to act independently of management. The lead director reviews agendas for the meetings and presides over executive sessions of the independent directors at each regularly scheduled board meeting.

Shareholders and employees can communicate any concerns to Alcoa’s Board of Directors through:

The Board of Directors recommended to shareholders at the 2010 and 2011 annual meetings that the three provisions in the Articles of Incorporation that require a super-majority vote be changed to a majority vote of the shares outstanding. The board proposal did not receive sufficient shareholder support to be adopted in either year. The board is resubmitting this proposal at the 2012 annual meeting of shareholders.

There were no economic, environmental, or social issues raised in 2011 by employees.

Some of our operating regions around the world overlap the habitats of rare and threatened species, but we don’t believe our activities impact substantively on these habitats or the species.

At our mines, we endeavour to implement a progressive rehabilitation program to restore disturbed forests to as close to their natural condition as we are able, as soon after mining as we can. We are also committed to avoiding formal protected areas where conservation is the management priority.

At our Western Australian mines, we have developed management plans for the five nationally-listed fauna species that occur within the mining region. In our mine rehabilitation operations, we return piles of logs, rocks, and soil specifically to restore den sites for the threatened, carnivorous marsupial known as the chuditch. We also sponsor a wide range of conservation initiatives that include an extensive feral predator control program (known as Operation Foxglove); a seed conservation scientist at the state botanical garden; and research projects on protected species. Our staff members have also participated in species recovery programs.

As a partner in a hydroelectric project in Brazil and through a biodiversity offset program, we are sponsoring a seed gene-banking initiative. The project partners are also planting 100,000 seedlings of the protected tree species Araucaria angustifolia.

Various procedures exist in accordance with regulations (e.g., European Works Council) and terms of our labor contracts with numerous unions throughout the world. The minimum notice periods vary significantly, making it complicated to provide a more thorough response.

All formal agreements have health and safety specific topics included. The number of formal agreements is too large to list all topics specifically.

All locations also have health and safety committees that participate in deployment of the location’s proactive safety efforts.

Each location has various task, department, ad hoc, and other committees to develop and implement health and safety programs based on the location’s strategic health and safety plan. These leadership groups include a cross-section of personnel from the facility.

Alcoa has too numerous investments to report. For any investment agreement where Alcoa is either a controlling partner or 50% or more owner, all include human rights clauses consistent with Alcoa policies and procedures. Some of the agreements where Alcoa is a minority partner do not have specific human rights clauses. In those instances, Alcoa attempts to influence those agreements and models its human rights practices in each of those investments.

All greenfield sites do an environment, social, and health impact assessment that incorporates key components of human rights.

We have a Product Safety and Integrity (PS&I) Standard to identify what is required for product safety management systems developed by our businesses. The standard includes requirements for raw material sources, production practices, and assurances that our products meet customer and internal specifications.

We test aluminum and end products to verify compliance with regulations and internal standards. We utilize good manufacturing practices to ensure that production, storage, and shipping practices maintain the integrity of our products and protect them from potential contamination.

In our aluminum production businesses, we review content of potential production by-products that may enter into aluminum recovery or recycle streams and ensure that customers are informed of hazards associated with reclaiming metal from those materials. This includes safety and health information on MSDS beyond what may be required by regulations.

We have a limited number of hand tools that we sell to customers and, in line with our PS&I Standard, we consider end use of the tools and have incorporated ergonomic considerations in the design of the tools.